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PPP: public and private sector roles

Once a public authority has decided to set up a PPP, its role is not to execute the work but to govern, i.e. to set up the administrative, legal and financial procedures needed for proper execution of the contract.

The purpose of a PPP is to leverage synergies and complementary capabilities that exist between the public and the private sector. It does this through ongoing cooperation and joint discussion of the objectives to be achieved and the structures to be built.

The role of the public authorities is to:

Identify local development and infrastructure needs
Determine which projects should be given priority based on their benefits
Choose the most suitable management method after comparing all the costs and benefits of the various forms of contract
Establish efficient procedures for launching projects, executing contracts and minimising costs
Define the structures’ functions
Ensure that the service is accessible to the various categories of users
Work with the private sector operatorto define and adapt the pricing policy
Set up efficient reporting and control procedures

The role of the private sector is to:

Propose innovative, high-quality solutions to the public authorities, as part of tendering procedures
Propose the most appropriate financing solutions to the public authorities
Maximise the overall efficiency of the contract from design to maintenance
Assumethe risks related to its expertise
Optimise pricing policy, striking a fair and appropriate balance between the need for profitability and the need to provide users with maximum service quality
Reach out to users and get to know them in order to understand and anticipate their needs and make adjustments in the services provided
Manage the human resources involved in the PPP, so as to strike a balance between flexibility and progress
Leverage research and development work and innovate at all phases of a contract to adapt to a changing environment